2022's Real Estate Market Outlook

There are some interesting projections for this year’s real estate market

As we kick off the new year everyone is now wondering what is in store for this year’s real estate market. The past year and a half or so has been less typical as we have been dealing with adjustments imposed by the pandemic combined with limited inventory and rising prices. Here are some reports of speculation by some economist experts about the forecast.

Realtor.com’s Chief Economist, Danielle Hale, states “Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.”

The National Association of Realtors Chief Economist, Lawrence Yun, comments on inventory stating “With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”

Deputy Chief Economist of First American, Odeta Kushi, offers a prediction on rates. “Consensus forecasts put rates at about 3.7% by the end of (the) year. So, that’s still historically low, but certainly higher than they are today.”

For sellers, it looks like this year will continue to remain a seller’s market with home prices on the rise, but maybe at a slower pace. Demand will probably stay consistent so seller’s will have an advantage in the marketplace. However, don’t wait to list for too long as inventory may start increasing which will help leverage buyer’s confidence.

For buyers, there could be some hope in the future for increasing inventory levels. This would help ease the competition when searching for the ideal home. Home prices and interest rates may still inch up but with affordability in buyer’s favor now it is wise to not hold off a home purchase.